What Is an Advantage of Activity-Based Costing Compared to Traditional

question 52

Multiple Choice

What is an advantage of activity-based costing compared to traditional costing?

• A)it is cheaper to implement.
• B)overhead allocation is objective rather than arbitrary.
• C)linking overheads to cost drivers results in a fairer and more accurate costing.
• D)all of the above are advantages.

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Definitions:

Pseudopodia

Pseudopodia are temporary, amoeba-like projections of the cell membrane used by some cells for movement and feeding.

Cilia

Short, hairlike projections from the plasma membrane, occurring usually in larger numbers.

Zygospore

Thick-walled resting cell formed during sexual reproduction of zygospore fungi.

Ascocarp

Reproductive structure of the sac fungi (phylum Ascomycota).